Switzerland is not one of the most affordable jurisdictions in the world to establish a business, but it does provide many important advantages for company formation. Therefore, many entrepreneurs and companies from all across the world are interested in Swiss company formation, whether it is a matter of family-owned companies, cross-border or multinational companies, small to medium-sized enterprises and other types of business structures.

Considering Swiss company formation as an option can offer a series of advantages for its owner, from which the most important ones should be at least mentioned.

Low tax rates for Swiss companies

Tax assessments and tax liability are clearly established through a solid inter-cantonal tax system and the use of special tax statues and fiscal incentives for certain business structures such as holding companies, financial companies, trading companies, intellectual property licensing, service companies, and branches of foreign companies. All those interested in setting up any of the business structures mentioned above should consider opting for Swiss company formation.

In addition, Switzerland has concluded a large number of double taxation avoidance treaties with countries from all over the world, an important advantage that allows efficient tax optimization and tax planning. Also, a well-developed bilateral investment treaties network provides protection for Swiss corporate investments in all kinds of emerging economies.

Accounting and tax reporting is a relatively simple and inexpensive process. The Swiss taxation system permits generous allowances for various deductions made by a company, travel expenses and other types of expenses related to research and development.

Friendly business-environment

Despite its size, Switzerland is home of a large number of local and foreign companies due to the country’s stable economy and business environment. The stable economy and legal infrastructure offers high levels of individual and corporate security on different levels. Therefore, it shouldn’t come as a surprise that many foreign investors have decided to opt for Swiss company formation. Switzerland’s traditional liberal attitude to business and discretion regarding financial affairs has remained strong, even after the new rules imposed by FINMA or the increasing level of scrutiny of Swiss banks.

Regarding the aspects of the Swiss business environment, companies established in this jurisdiction can benefit from a high level of confidentiality and discretion in all business relationships and partnerships, low reporting requirements, the possibility to conduct cross-border business activities, economic stability and stable legal environment.

Banking advantages

The Swiss company formation process requires opening a bank account with a Swiss bank in order to complete the incorporation process. The bank account used to deposit the minimum required share capital is used as a business account after the company is registered.

Swiss banks are known for promoting confidentiality regarding their clients. Bank accounts can be held in CHF and in a large variety of different currencies. The clients of Swiss bank have also access to retail and corporate banking platforms, which include credit and debit cards, e-banking, corporate operations, international payment facilities, treasury arrangements and letter of credit facilities, to name just a few features.

Excellent environment for multinational and small to medium-sized enterprises

Usually, most founders that opt for Swiss company formation choose the GmbH or the AG as preferred business structures. However the most important advantage is that business structures available for Swiss company formation are also suitable for multinational companies and a wide range of small to medium-sized enterprises.

Switzerland has a famous structure designed for these types of companies, especially for companies that fulfill certain requirements, which allows them to benefit from various tax deductions, incentives and tax breaks.

Considering just these important advantages, it’s highly advisable to profit as much as possible from them, therefore before starting a business in Switzerland, the company founder/founders should request professional consulting and advice from a firm specialized in Swiss company formation.

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